News Update from Nepal 30 August 2006 Government’s Moves The security situation in Nepal still remains weak. The level of violence- robbery, proliferation of small arms, mob action and activities of Janatantrik Tarai Mukti Morcha (JTMM), a break-away faction of CPN(Maoist) which often engages in crossfire with CPN (Maoist)- continues. The government has not been able to establish its authority because the Seven Party Alliance(SPA) is playing the role of both government and opposition. It has to withdraw its recent decision of the price hike on petroleum products by 25%. The statement by Premier G.P. Koirala that the House of Representatives(HOR) cannot be dissolved and the CPN(Maoist) cannot join the interim government until rebels are disarmed and the King should be given a“space”, evoked sharp reactions from the CPN-UML, Nepali Congress(Democratic) United People’s Front and the CPN(Maoist) as they all prefer a democratic republic. The CPN(Maoist) ideologue Dr. Babu Ram Bhattarai criticized Koirala for advocating a“space” for the King. He also accused him of refusing to sign a joint letter to be sent to the UN under the influence of“invisible power.” To increase the leverage of the party Premier Koirala floated an idea of unifying the two Nepali Congresses. But, President of NC(D) Sher B. Deuba said that his party is ready for a“dignified unification with appropriate position for his party men at all levels, clarifying the ideological ambiguities and shaping the party to a fully democratic one.” NC(D) leaders said clearly that they do not want unification to give a space to the King. On July 31, the cabinet approved a Bill allowing the eldest child of the monarch to become heir to the throne irrespective of gender. A committee headed by the Prime Minister will be set up in the parliament to select the heir. It also amended the law on the Royal Household Expenditure, limiting the recipients of state facilities and allowances to the king, queen, crown prince, yubaran i(in case of the eldest daughter ascending to the throne) and the queen mother. Though the yubarani will subsequently ascend the throne, her husband will not be entitled to the facilities. The SPA decided to retain“ceremonial monarchy” until Constituent Assembly(CA) elections are held. On August 13, Parliament asked the government to suspend the transaction of land owned by royal family members until all necessary arrangements for taxing those is complete. The Land Reforms Management Minister disclosed that the royal family members possess 39,378 ropanis of land and have a share in 17 companies. On August 23, the Civil Service(second amendment) Bill has reserved 45% seats in the civil service for underprivileged sections of society- women, Dalits, Janajatis, handicapped and backward people. It also agreed for an annual increment of allowance, taking into account the price index, providing trade union rights up to the section officer level, fulfillment of 10% positions in the Under and Joint Secretary Level through open competition, and personnel from Kharidar to Under secretary level will be promoted automatically after completing 16 years in the same position. If they do not have a minimum qualification required for the upper post, they need 20 years of service. 1